09 July 2020

Farmers will benefit from simpler and more proportionate penalties for small over-claims of land under the Basic Payment Scheme in England.

The government has simplified the way penalties are calculated for small over-claims of land as part of measures to make the BPS less complicated for customers in 2020. This follows measures introduced in March to reduce the paperwork required from young farmers.

If the over-claim is more than 2 hectares or 3%, but not more than 10%, of the area determined, the RPA will apply a penalty. The penalty will be 0.75 times the size of the over-claim. As in previous years, for over-claims of more than 10% of the area determined, the penalty will be 1.5 times the size of the over-claim.

There will be no penalty for an over-claim of no more than 2 hectares or 3% of the area determined.

As trailed in March, the Government has set the exchange rate to be used for BPS 2020 payments at €1 = 0.89092. This is the same as last year so that farmers will see no material difference in their BPS payments.

Further guidance can be found on the Rural Payments Agency website.

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